Robert Half International Inc (RHI)

Working capital turnover

		Dec 31, 2023	Sep 30, 2023	Jun 30, 2023	Mar 31, 2023	Dec 31, 2022	Sep 30, 2022	Jun 30, 2022	Mar 31, 2022	Dec 31, 2021	Sep 30, 2021	Jun 30, 2021	Mar 31, 2021	Dec 31, 2020	Sep 30, 2020	Jun 30, 2020	Mar 31, 2020	Dec 31, 2019	Sep 30, 2019	Jun 30, 2019	Mar 31, 2019
Revenue (ttm)	US$ in thousands	6,416,490	6,668,700	6,933,560	7,152,300	7,246,140	7,284,310	7,161,310	6,878,200	6,461,620	5,995,740	5,473,040	5,001,040	5,110,270	5,343,560	5,706,820	6,115,820	6,078,200	6,022,480	5,936,540	5,877,170
Total current assets	US$ in thousands	2,297,140	2,328,110	2,378,100	2,252,320	2,285,110	2,249,850	2,260,740	2,272,040	2,268,550	2,233,750	2,053,230	1,873,920	1,842,740	1,853,680	1,720,150	1,606,660	1,628,850	1,631,180	1,564,920	1,532,020
Total current liabilities	US$ in thousands	1,235,110	1,276,280	1,276,570	1,148,310	1,216,200	1,234,250	1,266,870	1,289,030	1,358,670	1,341,600	1,196,310	1,076,590	1,046,630	1,052,780	977,167	913,354	940,692	977,440	909,510	900,730
Working capital turnover		6.04	6.34	6.29	6.48	6.78	7.17	7.21	7.00	7.10	6.72	6.39	6.27	6.42	6.67	7.68	8.82	8.83	9.21	9.06	9.31

December 31, 2023 calculation

Working capital turnover = Revenue (ttm) ÷ (Total current assets – Total current liabilities)
= $6,416,490K ÷ ($2,297,140K – $1,235,110K)
= 6.04

Working capital turnover is a financial ratio that indicates how efficiently a company utilizes its working capital to generate sales. A higher working capital turnover ratio signifies better efficiency in managing working capital.

Analyzing the data provided for Robert Half Inc, we observe fluctuations in the working capital turnover ratio over the past eight quarters. The working capital turnover for Q4 2023 was 6.02, indicating that the company generated $6.02 in revenue for every dollar of working capital invested during the quarter.

Compared to the previous quarters, the working capital turnover ratio has shown a decreasing trend from Q1 2022 to Q4 2023. The trend suggests a potential decrease in efficiency in utilizing working capital to generate sales. However, the company has maintained a relatively consistent range between 6.00 to 7.00, indicating a consistent level of efficiency over time.

Further analysis and comparison with industry benchmarks or historical data could provide insights into the company's working capital management effectiveness and help in identifying potential areas for improvement.